Hotel Execs Are Upbeat About 2025 – 5 Trends They’re Talking About
Photo Credit: A view of the pool at the JW Marriott Desert Springs in Scottsdale, Arizona, the site of The Lodging Conference. Marriott
Skift Take
Lower interest rates could jumpstart transactions and development next year, but the industry isn't out of the woods yet.
Hotel industry leaders gathered at The Lodging Conference in Scottsdale, Arizona, last week to discuss emerging trends in the hotel market.
Here are the key takeaways from the world's largest hotel finance and development event.
1. Economic Outlook: Guardedly Positive The general consensus of executives was that the Fed's recent interest rate cut will boost enthusiasm for U.S. hotel development in 2025. However, executives cautioned that rates will likely remain higher than the average since 2008. "The [Federal Reserve's interest rate cut of] 50 basis points was great, but it doesn't change the IRR [internal rate of return] math that much," said Kevin Davis, Americas CEO, JLL Hotels & Hospitality Group. "Yet it certainly changes the psychology." Many expect another 50-100 basis points of Fed easing over the next 6 to 8 months, potentially sparking more deals. Some buyers may adjust expec
